AMARILLO, Texas (KAMR/KCIT) — Early voting is already underway in Texas, but next week, voters will decide on several constitutional amendments, including a change to the homestead exemption.
If approved, Proposition 4 on the Nov. 7, 2023 ballot would mean the homestead exemption would increase from $40,000 to $100,000. Jeffrey Dagley, chief appraiser at the Potter-Randall Appraisal District, said it is the amount exempted from the school district portion of property taxes.
“It depends on each school district, what their tax rate is, but it could be five to $600 for each individual,” said Dagley, when asked how much people might save on their tax bill. “And then in addition to the homestead exemption, that has some compression to the tax rate, so the school district tax rates that property owners will see this year are going to be quite a bit lower than they were in 2022.”
Dagley said there would also be more cuts for seniors and people with disabilities who own property.
“Anybody that has a homestead exemption, they can qualify for an additional exemption for 65 or older, an age exemption,” he continued. “And that will grant an additional $10,000 to the school portion of the taxes for that exemption. So instead of just being 100,000, it would be 110,000.”
According to Dagley, Prop. 4 would also create a limit to the increase in appraised values to 20% for non-homestead properties valued under $5 million.
“So the renter is not paying the property taxes, but the person they’re renting from is paying the property tax. So part of this bill that was passed, and then if the constitutional amendment is passed, is adding what they’re calling a circuit breaker. That’s going to come into effect for 2024, 2025, and 2026,” he added. “The reduction in the tax rates might be passed on to someone that is renting, but that’s always gonna be up to how the person that’s renting the property is gonna pass that through or not.”
If passed, Dagley said Texas property owners will see the change in their homestead exemptions reflected in their 2023 tax bills.
He said Prop. 4 would also send money from the state’s general revenue fund to school districts, instead of coming from locally collected property taxes.
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